Victoria, where households use more gas than the rest of the houses in Australia combined, just took huge steps towards breaking free from this polluting fossil fuel.  Thanks to sustained pressure from organisations and communities across the state, the Victorian Government announced a suite of new regulations that will help electrify homes and reduce gas demand, benefiting renters, industry, workers, and the climate! 

They could have gone further, but these common-sense regulations are a critical step in getting Victoria off dirty gas for good. 

For years, the gas industry has tried to convince us that “natural” gas is a clean, reliable, and affordable energy source. This couldn’t be further from the truth. Gas is primarily methane, a fossil fuel and a potent greenhouse gas that is over 80 times more powerful than carbon dioxide at heating the planet in the short term. Beyond its devastating climate impact, burning gas in our homes releases toxic pollutants which are directly linked to respiratory illnesses and an increased risk of childhood asthma. On top of that, as our domestic gas reserves dwindle, we are exposed to volatile international prices, leading to skyrocketing energy bills. Phasing out gas is not just a climate imperative; it’s a critical step for our health, our environment, and our hip pockets.

Let’s dig into what happened in Victoria, how Big Gas fought back, and why this move is so significant.

The Good: How the New Regulations Help Victorians Electrify

The new regulations put Victoria on a clear path to electrifying households and weaning off gas – which means no more offshore gas rigs or fracking are needed on the path to clean energy. Here’s what was announced:

• All-Electric New Builds: From January 2027, all new residential and most new commercial buildings will be required to be built all-electric. This is a crucial step that closes a major loophole and ensures that every new home is better for your health, saving people money, and ready for a renewable energy grid from day one.
• Phasing out gas-powered hot water: From March 2027, when a gas hot water system in an existing home breaks down, it must be replaced with an efficient electric alternative, such as a heat pump. This vital “end-of-life” policy prevents households from being locked into another 15-20 years of burning fossil fuels.
• Empowering Renters: For the first time, new minimum energy efficiency standards will apply to rental properties from March 2027. This includes a mandate to replace end-of-life gas hot water systems and heaters with electric alternatives when a new lease begins, as well as mandating insulation and draught proofing. This is a game-changer for renters who have been stuck with inefficient appliances and high energy bills for years.
• Making Electrification Affordable: The government also announced significant funding support for industry, farmers, community groups, plumbers and electricians. This included $10 million for food and beverage manufacturers and dairy farms to help industry get off gas, $5 million for farmers to reduce their energy bills and emissions, $5 million to upskill more plumbers and electricians in the transition away from gas, and more!

Taken together, this package is a clear win for the planet, our hip pockets, and communities.

The Bad: How Big Gas Fought to Water Down the Policy

The new Victorian regulations didn’t happen without a fierce fight. It’s true that the final announcement was a watered down version of the initial proposal with delays in implementation dates and the exclusion of gas space heaters – the biggest gas guzzlers in the household. Fortunately the government has created incentives for people to switch from gas to electric heating and thousands of people a month are already voluntarily taking that step!

But in passing these regulations, the Victorian government stood up to a long running campaign by Big Gas and a lot of lobbying from the fossil fuel industry to scrap the policy altogether.  You’ll never hear Big Gas admitting that gas is actually a highly polluting fossil fuel made up of methane, and that phasing it out is critical to meeting our national climate pollution targets…

A lot of the media about the announcement framed the whole package as a capitulation to Big Gas. But while the fossil fuel industry still got some of what it wanted, this is overall a huge step forwards for the climate and definitely worth celebrating.

Victoria’s Big Electrification Win Shows We Don’t Need More Gas

The threat of a pending gas shortage is a narrative the gas industry has jumped on to justify new offshore gas fields in places like the Bass Strait.  But the reality is that around 80% of gas extracted in Australia is exported.

The Victorian government’s recent Gas Security Statement confirms that these electrification reforms will unlock a significant amount of gas – enough to meet 85% of Victoria’s forecast industrial demand. We don’t need to dig up more gas to secure supply; we need to use it more wisely and transition away from it now where there are already opportunities to electrify.

While these new regulations send a clear signal to the market that gas is on the way out, the fight is far from over.  In spite of the science, state and federal governments continue to fast-track approvals of new gas projects, including new gas drilling in Victoria’s oceans. And we’re willing to bet that Big Gas will keep fighting to get the new regulations rolled back. 

Watch this space for more ways to take action to stop Big Gas and protect our oceans, the climate, and our futures from this filthy fossil fuel.